Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) said Thursday it has started developing its full spectrum cannabis vape cartridges for Sugarbud Craft Growers Corp (CVE:SUGR) as part of its previously announced contract manufacturing agreement between the two companies.
Heritage’s subsidiary Voyage Cannabis Corp will produce the vape cartridges for Sugarbud using the latter’s high-quality cannabis, according to a statement.
The deal sees the two companies collaborating to develop pre-filled vape cartridges. Toronto-based Heritage will provide Sugarbud with extraction, formulation and production services in exchange for a minimum of 100,000 grams of dried cannabis per month for a 24-month period beginning May 1, 2020.
READ: Heritage Cannabis to collaborate with Sugarbud Craft Growers to bring pre-filled vape cartridges to Canadian consumers
“We are very pleased to be working with Sugarbud on the production of full spectrum vape cartridge products to support their cannabis 2.0 strategy,” Heritage CEO Clint Sharples said in a statement.
“As we continue the launch of our own products the contract manufacturing business remains an important part of our strategy and future revenue stream.”
Sugarbud CEO John Kondrosky added that the Calgary-based firm was looking for a manufacturing partner with a track record of producing consistent products as it prepared to launch its cannabis 2.0 products.
“We chose Heritage for this reason and for their ability to produce high-demand full spectrum cannabis oil products using no harmful additives, flavours or carrier oils,” Kondrosky told investors.
Sugarbud plans to market the vape cartridges in 4Q 2020.
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Story by ProactiveInvestors
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